Taxpayers are taking advantage of provisions in the One Big Beautiful Bill Act (OBBBA)—as are scammers and opportunists.

The IRS is warning taxpayers to be on alert for new scams. Scammers often take advantage of uncertainty surrounding new laws, and this one is no different. Here’s what you need to know.

Ghost Preparers Are Back

One concern is the return of “ghost preparers.” A ghost preparer is a tax preparer who isn’t on the IRS’s radar because they lack a Preparer Tax Identification Number (PTIN). To remain hidden, a ghost preparer will accept payment from a taxpayer to prepare a tax return but will not sign it, so the return will appear to be self-prepared. (For e-filed returns, the ghost preparer typically prepares the return but refuses to digitally sign it.)

By law, anyone paid to prepare or assist in preparing federal tax returns must have a valid PTIN. Paid tax preparers are required to sign the taxpayer’s return and include their PTIN.

With new and expanded credits under OBBBA, some of these preparers are promising large refunds by stretching or misapplying the rules. They may exaggerate eligibility, claim credits a taxpayer doesn’t qualify for, or make up deductions altogether. The problem? When the IRS comes calling, the taxpayer—not the preparer—is responsible for any errors, penalties, or interest.

🚩 Red flag: The preparer refuses to sign the return or provide a valid PTIN.

Tips and Overtime Deduction Scams

New deductions for tips and overtime are also drawing attention and abuse.

Under OBBBA, eligible taxpayers can deduct qualified tip income from taxable income (sometimes called “no tax on tips”), up to $25,000 annually, subject to income limits for the tax years 2025 to 2028. Only tips that are properly reported to employers and........

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